Estate Planning Considerations for People Living Alone.

If an individual lives alone without any children or spouse (i.e., “a lone individual”), more consideration is needed as to who will step in as a representative and manage the person’s financial, legal, and health decision making if the individual becomes disabled. Lone individuals can be socially isolated and more prone to fraudsters who befriend them for self-serving reasons.

First, is there someone whom the individual trusts with their affairs who would be willing to get involved in a fiduciary (legal representative) capacity? Is there a brother, sister, nice or nephew, or perhaps a cousin or a trusted friend? If so, are these persons willing and able to assist the individual if and when needed?

If the individual lives a reclusive life then having someone to rely upon is less likely. However, would the individual be willing to nominate a licensed private fiduciary, i.e., a professional who is trained and licensed to provide legal representative services either as an agent or as a trustee?

Often, a private fiduciary is nominated at least as an alternative agent in case the first choice is unavailable or unwilling to act. Considerations when selecting a private fiduciary are how much will the professional charge for their services, how available are they when needed, and are they a good fit and vice versa all things considered?

Second, what types of assets need to be managed and what qualifications are needed? Are there many bank and investment brokerage accounts? Can the accounts be consolidated? It is better to have a few financial accounts to keep track of and for someone else to manage.

Also, does the individual have a financial planner who knows all the accounts and the investment strategy? Does the individual keep an available list of his or her accounts and the credentials necessary to access them online? Otherwise, anyone trying to step in will be unable to do so without the credentials and a court order will be needed for authority.

Are there any retirement accounts? Retirement accounts have federally required minimum distributions that commence at the participant’s required beginning distribution date (now usually 73 years of age), but also sooner if the person is a beneficiary to an inherited retirement account of a now deceased participant (account owner).

Next, are there any real properties to manage? Any business interests? These assets typically are best managed inside of a trust by a successor trustee upon the individual owner’s incapacity or death. If a trust is established the bank and investment (non retirement) accounts can also go into the trust in addition to the real properties and the business interests.

Third, when does the representative’s authority commence? Is it now or upon incapacity or death. Does the individual presently need any assistance? Perhaps the individual has some challenges requiring some assistance? If he or she wants to authorize someone to act as their support (advisor) then the individual and the supporter can sign a “Supported Decision-Making Agreement’ detailing the scope of the supportive arrangement. The supporter (advisor) can then participate at meetings as an advisor and as facilitator of communications and implementing decisions.

Fourth, does the individual have welfare checks or emergency assistance in place? The individual may want an 24/7 constant remote service in the event of an incident requiring emergency services. All should know whom to call if something happens.

Putting supports in place now means that when a crisis occurs there is more chance for immediate attention and a favorable outcome.

The foregoing is not legal advice.  Consult a qualified estate planning attorney for guidance. Dennis A. Fordham, Attorney, is a State Bar-Certified Specialist in estate planning, probate and trust law. His office is at 870 S. Main St., Lakeport, Calif. He can be reached at Dennis@DennisFordhamLaw.com and 707-263-3235.